Monday, June 27, 2011

The China Effect

        What's happening in China has a trickle down effect. Of major concern to the bridal industry and ultimately the bride is rising prices for gowns and anticipated delivery delays.
         Due to China's one child rule, the seemingly endless supply of workers is decreasing. And the younger people that do exist aren't necessarily gravitating toward factory work. Rather they want to buy into a more luxurious life style they know is possible via global media. Because Farmers are being subsidized to grow specific in demand crops, workers can stay closer to home and earn the same wages without having to face the environmental conditions in many of China's larger cities. In the past year or two, this has lead to an annual phenomenon of workers not returning after the Chinese New Year.
       Media reports estimate that anywhere from 30 to 70 percent of these workers were expected to defect this year, despite incentives or higher pay being offered to returning workers as well as new workers who are being heavily recruited.
       Regarding new materials, clothing manufactures in China have already faced shortages in such fabrics as cotton and silk, for which they've had to pay premiums. And more recently, they've faced similar issues with polyester as polyester is a petroleum-based product whose cost also escalated.
     If productions capacity is reduced because of skilled labor and materials shortages, which companies will get preferential treatment? Some industry members believe that larger companies will be at the head of the line and smaller companies may be forced out of business. Because such a high percentage of bridal merchandise is being manufactured in China today, these conditions could lead to a major purge of bridal suppliers in the near future.
      It is certain that there will be delays and bridal retailers should encourage brides to order there gowns as soon as possible. If the gown is ordered enough in advance and a problem strikes, there will be time to rectify it.
      The bottom line for brides who are getting married in 2012- order your gown at least 8-12 months before your date. It will elevate a lot of stress for everyone involved.
                                    

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